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Charter plans to file Chapter 11

By   /   Friday, February 13th, 2009  /   Comments Off on Charter plans to file Chapter 11

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Charter Communications said it expects to file for Chapter 11 bankruptcy by April as part of a restructuring plan.

Charter provides cable television and business communications in Ventura and San Luis Obispo counties. The company is struggling under $21 billion in debt and has worked out a plan with some of its debt holders to trim $8 billion from that total.

The restructuring calls for St. Louis-based Charter, which is controlled by Microsoft co-founder Paul Allen, to file for bankruptcy. In its statement, the company said it will fund itself through the bankruptcy with about $800 million in cash instead of taking out a debtor-in-possession loan.

The deal with its debt holders comes after Charter failed to pay $74 million in interest due on bonds last month. In its restructuring announcement Feb. 12, Charter said it plans to raise about $3 billion by refinancing debt and securing new money, with two subsidiaries paying off the $74 million in interest.

Charter serves 28 states and has about 5.6 million customers, according to its Web site.

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